Trade in livestock futures is dominated by aggressive market support that has pushed nearby lean hog futures to new short-term highs. October futures are flirting with limit gains at midday. Cattle futures, on the other hand, remain sluggish with limited activity developing in all contracts. Corn markets are lower in light trade with September corn futures 5 cents lower. Stocks are higher in light trade. The Dow Jones is 154 points higher while Nasdaq is up 75 points.
LIVE CATTLE:
Live cattle futures have trickled lower through the morning with prices 10 to 25 cents per hundredweight (cwt) lower. The overall lack of pressure in the market seems to be focusing on the firm undertone seen late last week. The aggressive gains in hog markets have also likely limited any buyer support in cattle markets, as some traders are focusing all of their attention on the hog complex. Cash cattle markets are undeveloped with no bids or asking prices readily available at this point. It may be the last half of the week again until significant market development are seen. Boxed beef cut-outs at midday are mixed, $0.23 higher (select) to down $0.07 per cwt (choice) with light movement of 67 total loads reported (39 loads of choice cuts, 17 loads of select cuts, no loads of trimmings, 11 loads of ground beef).
FEEDER CATTLE:
Narrow losses have slowly developed through the morning Tuesday. Traders are looking for additional market direction, but given choppy trade activity through the week, traders seem to be unable to bring any significant movement to the table. This is keeping prices steady to 15 cent per cwt lower in most contracts as the potential for late-day market shifts still develops due to the limited overall volume.
LEAN HOGS:
Strong gains have flooded into nearby lean hog futures trade Tuesday with front-month October futures flirting with limit gains as prices are $2.90 per cwt higher at midday. Triple-digit gains are seen in all nearby trade with December and February futures trading between $1.40 and $2.50 per cwt higher. Increased support has also developed in deferred futures based on the momentum shift in spot contracts, but traders remain less aggressive, with prices moving just 40 to 90 cents per cwt higher during morning activity. This may add even more uncertainty through the rest of the week. Cash prices are higher on the National Direct morning cash hog report. The weighted average price is $0.89 higher at $51.55 per cwt with the range from $44.00 to $55.00 on 6,312 head reported sold. Cash prices are higher on the Iowa/Minnesota Direct morning cash hog report. The weighted average price is $0.60 higher at $52.43 per cwt with the range from $44.00 to $55.00 on 3,791 head reported sold. The National Pork Plant Report posted 200 loads selling on the morning report. Pork carcass values added $0.27 per cwt at $76.29 per cwt. Lean hog index for 9/14 is at $53.48 up 1.63 with a projected two-day index of 54.58, up 1.10.
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